shkreli. it's friday, september 8, 2017, "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." >> good morning. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. yesterday the dow was down by 22 points look at what's happening with the futures this morning right now we are looking at declines once again. modest declines. dow futures indicated down by 28 points s&p futures off by 3.5 the nasdaq down by 4 the top story, hurricane irma just downgraded to a category 4 this morning but it still could destroy parts of florida winds of 155 miles per hour let's get the latest on where the storm is tracking from kalee dionne

good morning >> it's still moving to the west-northwest it will continue that track through bahamas and cuba these are the spaghetti plots. the actual track has it looking like it will make a landfall in south florida going into early sunday morning between now and then you will start to see conditions deteriorate you have really the rest of the day today if you're in key west f you're in south florida to finish preparations and get evacuations underway alerts going on. a hurricane warning issued overnight for south florida in the purple also for the bahamas, the northern coast of cuba as well and still for the dominican republic this is a huge storm out there that's making its way close to the continental united states. if did downgrade to a category 4 storm, but i want to talk about that what it's doing now is going through an eyewall replacement cycle. so it's weakening because the

thunderstorms right outside the eyewall are growing stronger than the thunderstorms around the eyewall, it's kind of collapsing this will continue, but once that is done, we could see it intensify. it's also moving over some of the warmest water it's seen as it moves in between cuba and the bahamas, and it is 155-mile-per-hour winds now. category 5, 157-mile-per-hour and up so only a few in regards to wind speeds boost of thes both of these cause catastrophic damage. as can moves forward we expect it to be at least a category 4 storm before it makes landfall we will continue to trash this throughout the day today we'll have more later on >> thank you we'll continue along here. evacuations and other last-minute storm preparations are underway in florida that's where we find morgan brennan

good morning >> reporter: good morning. these are some of the last planes that will be sitting on this tarmac for the next several days last flight out of this airport, 7:45 tonight so as hurricane irma comes closer to florida, this is the scenario playing out from key west up to orlando operation beginning to wind down if you're lucky enough to get to one of these airports on time, good luck finding a flight flights throughout the state have been largely sold out for the last couple of days. more are being canceled. overnight 600 flights were canceled according to flight aware. that brings the total above 2,000 because of this storm, just for the state of florida. if you do have a flight, look at this it's a little dark, but you can see it the parking garages are full that's the kacase in ft. lauderdale and in miami. this is the reason why so many people are hitting the road. more and more evacuees are

expected to hit the road as the day goes on. tolls have beeen waived for several days now we'll hit the road and make that northward trip and reporting a bit later this morning on what the conditions are like and what everyone is going through. guys >> all right, morgan you got plans, right will you exit the area eventually >> yes, we have plans. we'll be sort of chronicling this process as everybody tries to make their way west and north out of this state. as i mentioned, a lot of folks are wrapping things up some folks have to work today, then they're getting in the car. i think it will get busier as the day goes on. folks here are rattled this is a scary storm. people are trying to get away. >> i heard 1 out of every 4 gas stations in the state is without gasoline at this point what have you seen just from your travels around the state. how difficult is it to get

gasoline >> it's tough to get gasoline. we were in miami beach yesterday. two different gas stops that are a couple blocks away from each other, both with long, long lines. we were at one of them yesterday. the attendant said we have one hour before we are completely out of gas that's the scenario playing out. it's also hard to get rental cars a number of folks will be staying put because they can't get out. >> i think of south florida, i can't think of a more highly or densely populated area probably not true, but having been down there many times, it seems like one of the most highly densely populated areas around it's been over a couple days at this point >> the airlines have been adding flights over the past couple of days, but the window is closed on that. operations start to wind down. >> morgan, thank you

we're following another story. a lot of things happening. this is an earthquake in mexico. one of the most powerful earthquakes in years 8.1 earthquake striking off the country's southern coast early this morning it triggered a tsunami warning along the entire central coast of central america. earthquake hit 70 miles off the coast of chiapas, mexico multiple aftershocks have been reported. the top corporate story. equifax says a data breach may have exposed the information of 143 million americans. equifax discovered the breach

july 29th. the data exposed includes names, birth dates, addresses, driver's licenses and social security numbers. this is one of the largest breaches we've ever seen still smaller than the yahoo! breaches of last year, but 143 million americans. you can see if you were affected by going to equifax.com, i have heard reports about that website being difficult to navigate if you can get into it. >> i did it last night it's even unclear to me how it works. whoever designed it did a terrible job i'm sorry to say i don't know if they did it in a rush or what the issue is. you put your name in, your six last social security digits, you click through to this page, then it's supposed to tell you whether you are safe or not, in my case it didn't say, so i'm hoping that means i'm safe, then it tries to put you -- to enroll you in some kind of trusted i.d.

program, which -- >> thanks. >> gowhich given what happened - then they set up a date for you to come back to them they have so many people coming back to the website. in my case, it's a week or whatever it's complicated >> it sounds like a big number when you think of how many people are in the united states. >> 310 million, 143 million got their information ripped off >> how many people have credit, how many peep don't have credit history. sounds like people who have a credit history -- equifax, not a fan of any of those agencies couldn't happen to a nicer bunch of guys. >> >> it didn't happen to them t happened to us >> you have no recourse against those places >> i don't understand what recourse you would have now that they lost your information and had someone steal it from them

>> somebody bought something at saks, returned it, didn't register that it was returned, so you start getting, you know arc late fee, so they assign a late fee then the late fee starts earning interest on -- even if you do pay it, it never comes off you never get it off your credit >> the one thing that that security people do say that may be worth while is to consider spending some money, it will cost you, where you can freeze -- equifax, experian and transunion will only provide the credit reports doing businesses with you, so other business can't get access to it >> if you try to get a new line of credit, you are frozen out. >> you have to give them permission it creates another complication. but in terms of the security element, perhaps >> shares again under significant pressure for this. >> we should talk about this other piece. >> three equifax senior executives were lucky enough to get out before they of this

happened >> they may end up in jail when this is all over >> unbelievable. they sold stock on august 1st and 2nd after th breach was discovered but before the cyberattack was revealed the firm said the trio had not been informed of the incident and had no knowledge of the issue before selling shares worth almost $1.8 million. >> one of them was the chief financial officer. >> they say they had no idea >> that was my question, too the chain of command >> it's hard to imagine -- i said it in jest earlier, it's hard to imagine there won't be a investigation both by the s.e.c. and i would imagine perhaps even further. >> they may have been plans set up in advance. >> that's the problem. >> i was wondering the chain of command. some of them probably wouldn't have known about this in advance. maybe there's an explanation for the chief financial officer, maybe there was a pending house sale put forth before. maybe there seasis an explanati

for this but it looks terrible. when you look at the shares and the result of this information berevealed to the public, you can understand why there may be an investigation into these issues we will have a big conversation about cybersecurity, 2017's cambridge cyber summit will take place october 4th it brings together top technology leaders, ceos and government officials to explore the latest in cybersecurity. we wanted to get to washington, d.c. a lot going on there as well the house expected to pass a 15$15.3disaster relief package. eamon javersdowns us from washington with that >> good morning. speaking of the debt ceiling, we heard from the president of the united states yesterday. something we're not expecting to hear the president openly speculating

about the idea of getting rid of that debt ceiling altogether you know it bedevils members of congress every time it comes up. always a tough vote. the president thinking maybe we ought to get rid of this debt cells thing entirely >> for many years people have been talking about getting rid of debt ceiling altogether there's a lot of good reasons to do that. certainly that's something that will be discussed. we discussed it at the mie inii meeting we had yesterday it complicates things. it's not necessary, you're talking budget but it's something we could discuss. as long as it's there, it will never be violated. >> the president saying it won't be violated while it's in place, but musing about the idea of getting rid of it altogether the president there responding to a question from a reporter. i had a chance to ask kellyanne conway about this yesterday. i said was the president musing out loud here, or is there

something going on behind the scenes in terms of eliminating the debt ceiling she said the president does not muse as much as we think he does if he says something in public, there's a strategy behind it not only were there meetings on there the day before, but also a set of meetings on this the previous day two consecutive days of meetings at the house to discuss how to get rid of the debt ceiling. how that will play out on capitol hill is a different bet. you could see how they could get the votes to get rid of the debt ceiling. but a lot of concervatives and republicans like it because it's a reminder that the debt iscons. for the rest of the day, the president is at the white house, he'll take some briefings on hurricane preparations you've been hear being that impending disaster in florida. the president will be up to

speed about that then going camp david for the weekend. >> i guess i can see both sides of it. someone yesterday said it is like taking your batteries out of your smoke alarm, and leaving it there >> right interesting way to put it. >> but then again, the republicans and the conservatives and the deficit hawks will always extract something. we'll get something. they never get anything. it always gets raised eventually >> under obama they got spending cuts >> yeah, but was it because of -- >> not clear they'll get spending cutses thspend ing cuts this time >> the constant specter of closing down the federal government, the dance we get, i can see why the president might say that i can also see the other side. i don't know how do you think it plays out? any chance it goes away? >> i think there is a chance it goes away.

democrats it would like to get rid of it. they always provide the votes to get this done. republicans vote for it more reluctantly. they are forced to walk the walk a lot of republicans would vote to get rid of it your hard core freedom caucus, deficit hawks, those guys won't do it the question is whether the president is in a mood to roll them he seems to be in a mood to roll them this week you saw the president hugging chuck schumer in the office. that was a dramatic change of tone from this white house there's a lot of votes for this on the democratic side if they want to go that way. >> the freedom caucus guys, i will help andrew out here, the freedom caucus guys are ready to throw caution to the wind with dynamic scoring on the tax cuts are worried about -- how was that both sides are like that democrats give them away to redistribute wealth, the deficit is go to a million

both sides are -- >> i remember when a top level politician said deficits don't matter >> i know. he was a republican. >> i know. he was vice president. >> both sides are thick with hypocrisy. >> congress loves the power of the purse. congress gets some control here. really what this is about is power. power of the purse is about power of the direction of the country. congress is reluctant to give that up. this is a lever of power would be asking them to pass up on it. >> would you say he changed his tune and it is a moment of great bipartisanship >> he didn't say it was a moment of great bipartisanship. paul ryan said he didn't like the idea of a short-term debt ceiling deal the republicans were pushing for a year-long, 18-month deal the democrats were countering.

finally they offered a three-month deal, the president reached across and shook chuck schumer's hand and said we will take that deal that's something reasons didn't want to see. they said previously it was ridiculo ridiculous, all sorts of things. later paul ryan was asked about the deal, he said the president was in -- with all the hurricanes, diasters, he was looking for a bipartisan moment. he didn't say it was a great deal but it was a bipartisan moment by definition it was >> we'll so he how it plays out. joining us now is leah bennett and chris cordero. chris, in the same vain, this debt agreement, this bipartisan moment is the most positive thing to come out of washington, d.c. you say since the election. you viewed trumtrump's electiona

positive >> certainly the markets did >> no, just not many people did now conservatives would say this was a disaster for what happened you think it's a positive that trump worked with nancy and chuck? >> i think it was classic trump the way he handles things. he has to be unexpected. that's the way he gets things done completely unexpected at least there's a sense of working with the other side i think this keeps everybody on their toes in the long run this is better for the markets. >> can you believe that, nancy -- you know nancy. >> pelosi. >> nancy nancy called the president and said would you please tweet out that the dreamers have nothing to worry about for the next six months you saw the tweet. you must have liked that >> but this is something that trump said in -- over the last six months, he's been saying things like this also.

>> is there a genuine intrigue to nancy and chuck or is it a -- a slap down to mcconnell and ryan >> i think it's how he actually feels. i think he wants congress to do something on this. most of america wants congress to do something on this. >> is it a deal with -- i won't say the devil. is it a deal with people that may come back and hurt you down the road that you shouldn't have demt with on the first place on tax reform sorry, you will do reconciliati reconciliation >> that works in business, there's lots of different possibilities of people that you can do deals with. you're stuck with congress as congress is. it may come back to paint himself in a corner. that is a big risk here. at least it gets things moving >> looking at your comments, none of this stuff is that paramount for you, it's earnings are growing nicely regardless of what's going on. >> definitely.

i think there was a lot of optimism coming into the year that we would move more from an economy driven by monetary policy to one driven by fiscal policy that has not materialized. i hear a lot from clients. when will we have the selloff? we're concerned about trump. if you look at the underlying economy, operating earnings are supposed to be up 18%. which is a fantastic year. then if you look at july, consumer spending was up 2.7%, capex up 4.4%. so people a overlooking the underlying strength in the economy. >> i think that's why this deal was important. what could hurt the market is this plaqblackout period until e get to the next earnings season. the absence of data and how things are going, that's where the risk in the market is.

this deta this deal takes that risk off the market. >> bull markets don't die of old age, you are not seeing a recession on the horizon any time soon, are you >> no. i wouldn't be surprised if we had a pullback it's been a long time, we've gone an unusually long time without a correction don't see a catalyst for a bear market or recession at this point. >> 2018 we continue to go -- trend higher even with the election coming? >> sure. the economy is stronger than it has been the last eight years. we'll see volatility we'll see bumps. long-term we're in good financial shape. >> maybe we'll end up like one of those european countries, seven parties, no one win as majority >> we have had this for a long time >> the far right gets together with the socialists.

>> we had this for a long time the idea that we're a two-party system is not realistic. if you lock at republicyou lookr democrats, they're made up of a whole group. >> it's fascinating. >> you are just an outsider watching this. >> i'm fascinated by all of this >> you're a citizen. >> i am a citizen. you think it's a good thing? who are you rooting for these days who are you? >> i do -- shaking things up appeals to me a little bit. >> right >> but is he working with the swamp or is this part of getting rid of the swamp >> this is the question. >> thank you coming up, when we return, get ready. cnbc's delivering alpha is four days away. guests include steve mnuchin, ray dalio, many, many more up next, we'll get you ready with a look at some of the big

issues on the table. you're watching "squawk box" on cnbc

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>> it's hard to think of a time when the intersection between wall street and washington is less pronounced than today that makes the delivering alpha conference on tuesday such an important event. the speakers include some of the most legendary investors and since the election some of them have been circling the political sphere whether with words or wallets. ray dalio has been vocal against the rise of populism and the political risks related to north korea and washington he's urging investors to put 10% of their investments into gold to hedge these risks jamie dimon will also be attending. he's been increasingly critical of the white house speaking out on topics from charlottesville to the dreamers. also at delivering alpha, steve schwartzman will be speaking for the first time since the advisory council he led for the president was disbanded following the deadly events in

virginia plenty to talk about >> i think there will be a lot of political conversations >> hard to avoid them. >> i hope to get some ideas about where we actually are, what to do about it. >> thoughts on the markets the debate going back and forth what lloyd blankfein weighed in about saying he thinks that potentially he's concerned about what he sees in the market >> all right thank you. the hoiuse is set to vote on th debt limit deal. we'll talk politics with jim vandehi. this guy rocks it. killing it. >> new >> new a lot of -- >> yes >> that's next

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welcome back you're watching "squawk box" live from the nasdaq market site in times square. welcome back in political news, the senate passed the debt limit deal trump struck with democrats, it includes $15 billion in harvey aid. the house will vote on that bill today. let's bring in jim vandehi >> is that where the money is? >> what money? >> is that -- we were having -- off-camera, i was saying politico was started bacon sey a conservative family. >> i don't think conservatives >> republicans, aren't they? i don't think -- >> politico is no mr. newhere na

part of the political spectrum >> when we were there, we made sure you were straight on the facts. that's what we try do at axios people need to know what's happening, what matters. >> and how you sound smart about things how should we be reading this de deal is this the beginning of a new wave >> trump saw the opportunity for a new deal most people don't care about continuing resolutions or lifting the debt ceiling for him he can look strong on hurricane funding, get this deal out of the way and focus on tax reform you talk to folks around him yesterday. he's on cloud nine he loves it he was watching "morning joe" and loved for the first time in five, six months people were cheering what he was doing. he sent out a tweet per nancy

pelosi's request is he looking at democrats, looking at schumer who he has a much better personal vibe than mcconnell, he says we might be able to get something done on immigration. tax reform you helped me on the debt limit. this is a different trump. i think he's more comfortable working with schumer than the republican leadership. >> i heard a smart nallties of it yesterday someone was saying he just wants to get things done if you're going to be coming to him as the party of obstructionism, will you have a harder time. if he can find anyone who wants to get things done -- that'sho he sees things >> 98% of his voters are with him, no matter what he does. doesn't matter after charlottesville, tapes in the campaign, even after cutting the deal with democrats, those trump voters are with him.

>> if we talk about taxes, the big issue, will democrats give him anything on that they don't -- will they be willing to let him win >> they might. probably not most democrats are under intense pressure to do nothing that smacks of a victory to trump tax cuts are tough if you're a democrat and up for reelection in a state where trump won overwhelmingly, you will vote against tax cuts that's a tough place to be >> you said the party of obstruction, i was like define which party you're talking about. >> showing up at that meeting, it was ryan and mcconnell. >> trump has been tweeting every day about the party of obstruction on the other side. you assume everyone thought you were talking about republicans >> i think it changes on a daily basis it changes on the deal >> trump now believes the

republicans are obstructionists. >> i think it's from a safe spot because he's an outsider anybody on the inside is somebody who as jim points out -- >> i want to know what this does with his relationship with paul rain and mitch mcconnell >> his relationship with mcconnell was bad before, it's terrible now with ryan, they're fine-ish. they don't like trump. they never liked trump if you're a republican, there's a decent chance that you end this year and look at their legislative accomplishments, they will have lifted the debt cap, not repealed obama cair, made permanent protections for legal immigrants, and i think tax reform gets done in q1 of next year if you're a paul ryan republican, you have to be pretty bummed right now. this is not what you signed up for.

>> you said tax is q1 '18 what does that look like? >> not reform, but cuts. they reduce the corporate rate to 23% my guess is that donald trump will keep the rates on individuals but decrease the rates for people of the middle income they will get rid of some deductions but all the popular ones stay. >> you're right about his supporters they were almost -- some of them were reagan democrats to start with they were working class people they may not have been republicans in the last two elections and they became republicans. they'll stick with him >> they just want to burn it down they hate big banks, big media -- >> do you believe the numbers that you see thrown around

snifrnlg >> i do. republicans are in a tough spot. they have not gotten much done with republican control of the city so, ye shg, yeah, it doesn't sue that the numbers for mcconnell are where they are there is almost a cooked in assumption now because they haven't gotten much done that republicans lose control of congress it's hard for republicans to lose control of the senate that map looks awesome for republicans, terrible for the democrats. in the house, the system is cooked very few races are actually competitivement. >> i never know with michael moore if he is trying to scare democrats into action or if he believe it he says the states where trump won, that he's -- his numbers would be higher now than where they were

do you think he gets re-elected and flake and others don't get re-elected >> who gets re-elected >> trump >> it's so far off the working assumption is he could never win again, but he could. >> who thinks that. >> when i'm walking around washington in bubble land, his favorable ratings in michigan, pen and wisconsin are lower today than on election day >> he would still beat hillary >> anybody will beat hillary >> she's helping herself with this book tour >> who he will be running against, nobody knows. the democratic party will go through the same awful process that the republican party did to figure out their new identity in the world order. nobody knows noeb knows what the democratic party stands for is it a centrist party or a

bernie sanders party she goes wild on bernie sanders and says he's not even a democrat >> give us a dark horse candidate in the democratic party? who will show up if i had to put money from my pocket on a candidate, terry mccough livm mcauliffe. if you think about twitter, facebook, social media era, you have to be 100% comfortable in your skin. i think being outrageous helps the guy is outrageous, 100% comfortable in his skin. he did fine in virginia. he will have a lot of money if he can distance himself from the clintons you look at me as if i'm on drugs. if not him, who? >> what about biden? >> he's too old. >> duval >> duval business guys, cuban, shultz >> in politics, who knows. sure it's really hard

>> do you remember -- >> i think the trump phenomenon has made every business person in america think to themselvesky do it, too >> did the benefactor work like "the apprentice" >> do you think jamie dimon will run for president? >> no. >> mayor bloomberg >> no. >> i think everybody now thinks they could be president because trump is president >> that's the point. >> experienced politics thought they would win, too. >> thank you >> subscribe to the e-mail, axios. appreciate it. when we come back, the future of wells fargo one year after the fake account scandal. and later this morning, an exclusive interview with nelson peltz at 9:45 eastern time the reception to his attempts at g p¬ working out yet. we'll hear what he has to say about it

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welcome back to "squawk box. today marks one year since news of the wells fargo scandal broke. here's a look at how it played out on cnbc.

>> welcome back. wells fargo was fined $185 million for creating unauthorized bank and credit card accounts for millions of customers without their knowledge. >> you have not returned a single nickel of personal earnings you have not fired a single senior executive you should resign >> mr. stumpf, are you considering resigning? will you give up your own bonuses ahead of the board decision to discuss it >> tim sloan will take over as ceo of wells fargo and that ceo john stumpf will retire as chairman and ceo >> all that happened within the first month. wilfred frost has been following the developments since then and where they stand today a lot more accounts than we first knew about >> we saw news there of mr. strum's resignation. he to forego 1$169 million of hi pay as well. the boert board received its

criticism, with nine member members receiving less than 50% approval that led to a new chairwoman being announced last month but the most significant recent revelations, as you were saying, the original sales scandal could have affected 3.5 million accounts rather than 2.1 million on top of a fresh issue in auto insurance. that raised questions about the new year-old leadership team given their messaging earlier in the year >> you said in the past that you thought things would get worse before they get better where are we on that sort of scale of things? is the worst behind you? is it improvement in sales numbers in terms of trends from here >> i think so. i think so we accomplished all the business changes we wanted to accomplish, now it's about execution >> where do things stand today do new revelations of false accounts, auto lending issues and lawsuits need to lead to more financial costs the company says no. second has there been a price

move taken into account? the price has underperformed the bank index down by 25% almost all of that from lost multiples, not lost earnings question three, does there need to be more board changes the august announcement saw 3 of 15 leaving with one new addition number four, is tim sloan's position safe, given the most haven't extension of the cross-selling scandal coming under his watch? a question for new chair betsy due to answer. certain politics would love to have their say >> wilf, do you have a monitor there? >> i do. >> does this look familiar to you or bring back memories for you of your early childhood? i wanted to look at this did you go -- did you have a first day of school? were you dressed like that did mom and dad -- when you saw that, did you --

>> joe, i didn't just dress like that for school, i dressed like that the whole time. >> going -- was there a feeling of deja vu was there a gaggle of reporters when you went when the frosts sent you off >> of course not nothing like it. i'm afraid to admit the clothes were similar >> you were taller i think of wilf now. see, that -- when i saw that i was like -- that had to bring back pleasant memories for you, no >> the clothes were similar. sadly mum kept us dressed matching whether at home of school that continued until i was about 17 there we go. i knew it. thank you, wilf. i didn't do the tease, i was like i want to bring up that picture. all of sudden there you were talking about wells fargo. i said i'll get to do it now thank you. >> my pleasure always. >> nice to see you both on the air and i saw him in

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welcome back to "squawk box. a little tired this morning from this it was an all-american affair at the u.s. open last night in the women's semifinals in the first match, this was the one that i was watching, a little bit of a, nos necessarily a permanent changing of the guard, but she didn't even have a number in front of her name defeating venus williams in three sets she won the first set 6-1. venus was not playing that well. she lost -- venus won the second set 6-0. venus absolutely mastered. and that set up a third set that went to 7-5. i was pins and needles very compelling. and then madison keys beating coco vandeweghe but all americans in this and i can't wait to see the final here i'd like coco okay she said she did the, you know, i was born in new york, so i'm a new york girl.

but she's been living in san diego for like -- she's trying to play it both -- >> oh, be -- >> she's not a new yorker. she's a california person. anyway, madison keys, that's true, madison keys, and we got the men's today. and then last night so much for the underdefeated season, right? >> well, the nfl season kicked off last night >> for the patriots. >> tom briddy and the new england patriots hosted the kansas city chiefs >> you know who won? >> chiefs knocked off the defending super bowl champs. tom brady struggled in the game, failing to pass for a touchdown. and talking about football as football season officially begins, a few tips for players in the field, and the markets. joining us right now, a decision coach and performance analyst, helps all sorts of hedge fund managers and other investors think about how to do all of this and you also help athletes >> true.

>> so you're a performance coach for all of us. what's the difference right now, between helping an investor and an athlete >> well, helping them know what game they're playing so wall street has this tendency to misappropriate sports psychology where you can be pro-active and you can make things happen >> right >> like get after it, mental toughness. except that doesn't work in the market what does it do? it causes you to make your position bigger usually or hold onto it when you shouldn't >> that's interesting. because within the investor world people always use sports metaphors. they think this is a sport, right? >> yes, yeah >> i've had people say "squawk" is the pregame show. and then the markets and then the halftime report, the markets, post game analysis. >> but in sports -- >> you think it's different? >> the high performance starts with really understanding what game you're playing. >> right >> so the closest sport that trading or investing is failing or surfing when you're reacting to the

elements >> right >> you can't make the wind do anything you can't make the waves do anything you have to figure out how you interact with this as opposed to football, obviously. >> right >> you can make something happen and that's how you focus >> what kind of athletes are you working with >> soccer. >> joseph? >> u.s. olympic snowboard racing >> snowboard racing. >> okay. >> isn't that crazy. >> professional baseball >> is is baseball more like the markets? >> baseball is a little more like the markets because you are reacting >> what are the issues that these people come to you with? >> oh, slumps for one. slumps is a big one for sports and wall street. why do i keep getting this wrong. the truth is why people keep getting it wrong is they get emotional. so there's the whole control emotion, not having emotions the whole world has got like the wrong idea of how emotions really work. scientists know this you have to have emotion to make

a decision, for example. >> can i ask you a semipolitical question in this environment, i assume you work with lots of investors who have a view about the political -- the politics of the moment, talk about being emotional, and then have to figure out how to contextualize that within what they're doing tradingwise. do you guys have that conversation >> we -- not so much mostly people joke about who they voted for or didn't vote for and why they voted for >> what about when it comes to north korea or something like that you might have a very emotional reaction to something that seems, you know, very dangerous, and terrible and yet you have to sort of -- >> well the trick is to learn to know what emotion you have, and to analyze it. put it on a spectrum from panic to overconfidence. by the way the patriots were obviously overconfident. and maybe a little bit out of their game so like how they felt affected what they did.

so the trick knowing how you feel k. >>.chad something to do with what happened. >> joe's always taught me just to follow whatever i actually think.

good morning tracking hurricane irma. the now category 4 storm pummeling the caribbean, setting its course for florida autonation still recovering from harvey and now bracing for irma's impact. ceo mike jackson is going to join us. plus millions of americans' information at risk after a major cyber attack at equifax. executives are also coming under fire we're going to tell you why and what you need to do it about it. it's friday, september 8th, 2017 the second hour of "squawk box" begins right now

live from the beating heart of business, new york city, this is skwx skwx "squawk box. >> another one good morning and welcome back to "squawk box" here on cnbc live from the nasdaq marketsite in times square i'm joe kernen. along with becky quick and andrew ross sorkin and we are tracking hurricane irma is there -- i mean i'm looking for anything positive. this is slightly positive, it's been downgraded to a category 4 storm. it keeps getting downgraded, but still going to be tough on parts of florida we're going to have a live report from fort lauderdale in just a few minutes first a check on the markets the futures after kind of a mixed day yesterday are indicated lower. down 47 points nasdaq down 11 and the s&p down 6 we'll take a quick look at the dollar, which was weak, and you

saw 2:02 on the ten year, becky? >> no. >> 2.02, 1.20 on the euro. andrew we haven't had a chance to talk yesterday it was disney in the dow, which really hurt the dow. and you know what hurt the nasdaq >> that would have been positive without disney >> what hurt the nasdaq was comcast, which they were at some type of a media presentation >> yep >> right and they were talking about subscriber losses. and being worse than people thought. 100,000 to 1 50,000. but in large part due to houston. and maybe in -- but also, noting it was the most competitive environment that they've seen in awhile and comcast was basically unchanged. that's what happened yesterday right at the conference as you can see, right at noon, trading above 40, and was down 7% at one point and closed down about 5% i think so media stocks, like a

double whammy. disney, i think, said flat earnings results would be similar to the year-ago period. >> but disney's not trading -- comcast is now trading in a very different way. i would argue in a better way, as well. but just comcast there's two separate issues. comcast -- >> comcast was right near an all-time high. >> right >> i think 42 is the all-time high disney's been in a long decline on the -- that started with worries about espn >> cable >> by the way, it's two years ago -- >> came on our show and talked about it remember >> right >> talked about espn we talked about whether they were going to ultimately have to go straight to the consumer and what that direct over the top would mean they don't have the same asset mix, obviously, as comcast but the news from comcast yesterday was about the cable -- the part that would normally offset some of the -- >> exactly >> so i don't know

it was like both parts of the media were a little concerning i don't know is there a move to otc that's going to destroy all of the market cap >> definitely moves to otc who knows what happens to market cap. >> there are going to be these step changes the question is how -- you know, who wins and who loses >> i mean look, cbs has struggled. if you're a stand-alone, that's where it's become really complicated. >> anyway, that was a big market story yesterday. at this hour, credit reporting agency equifax is reporting a data breach. i need a new adjective because i don't think massive does it. exposed the personal details of as many as 143 million americans. equifax shows that it discovered the breach in late july. didn't reveal it, though, until yesterday. said it is working with law

enforcement agencies, and is offering free credit monitoring services, a programming note, don't miss the 2017 cambridge cyber summit on october 4th. it's a program put on by cnbc and the aspen institute, bringing together top technology leaders and ceos and government officials. the latest in cybersecurity for more information, go to cnbc.com/cybersummit >> on the equifax thing because i got some more e-mails. go to the website and do it if you haven't done it. it's painful it doesn't make any sense. but there are people who are getting identified when you put your name and your last six digits it really is telling >> if you're -- >> if something bad happened -- >> it will tell you that you're exposed, and then it's going to give you a date to come back to the website, obviously in the next five days to a week, and then they're going to have you sign up forthis new trusted i.d. adviser program which people are now saying what is that but at least you'll have a sense

of -- >> monitors for the next year, right? >> right >> if anybody has actually hacked in to any of your accounts and -- >> a couple of insiders sold some stock we just said they discovered it in july. >> july 29th >> and one of them was the cfo >> but none of them had any idea >> well, that's what they say. >> that's what they're saying at this point is the chain of command i can understand how other people down the line didn't know. >> lower employees knew then and it didn't work its way up the line >> it's kind of shocking to think that the cfo didn't know something about that >> we need the whole time line >> you would think once you identify something like this you would want to know immediately the financial impact on the firm >> and there's always e-mail trails, right? e stands for evidence, right i've heard about that. >> i know some people who got into trouble for e-mail. >> let's -- let's change topics, though it is the latest on hurricane marine nbc's meteorologist kaylee

dionne is tracking the path and jackie deangelis is live in fort lauderdale kaylee >> good morning. we've been talking about how it's been downgraded to a category 4 i don't want us to focus on the category that's only with the wind. the wind speed is at about 150 miles an hour. category 5 starts at 157 two miles per hour off let's not focus on the category. this is a dangerous storm and it's going to continue to move in between, if you look at the track here, in between the bahamas, and cuba. it's going to move through some of the warmest water that it's seen and warm waters like fuel, like gasoline for a hurricane to keep it with the strength it could keep a category 5 storm alive. so what you're going to notice here as you move forward in the day is going to be a fluctuation in the really the strength of it so right now we've seen a downgrading. we may see it upgraded later on today. because it's going through an eyewall replacement where it's kind of collapsing in the middle because it's so big.

we're seeing some of those thunderstorms kind of taking over the inner eyewall once that's done it may start to intensify again. but directly towards south florida. so make sure, today is going to be your last day to get any last-minute preparations in place before conditions start to deteriorate. there's already hurricane watches and warnings the warns in red for the bahamass as well as south florida, the florida quaykeys you can see the pink color up to fort pierce, fort myers just south of tampa you could see hurricane conditions in a matter of about 48 hours a lot going on here as we move into the weekend make sure you're staying on top of this as it's only about the eye about 500 miles south of miami. guys >> okay. thank you, kaylee. we want to get over to jackie deangelis right now she is in fort laurd dale on the ground, has the latest there jackie >> good morning to you, andrew the fact the storm was downgraded to a category 4 hasn't really changed the perspective of the locals here

on the ground. they're still very concerned about this a lot of people highlighting to me the fact that this is a storm that is larger than the entire state. so that gives you a little bit of a sense of the magnitude. now preparations certainly have been made over the last few days for people to evacuate or prepare to weather the storm here on the ground we drove around last night we saw many shopping centers already boarded up and closed. if you didn't get your supplies, today is the last day to do it but certainly limited quantities and limited places to do that. gas, behind me, at the gas station has certainly been something that's in focus here as people are hitting the roads. and they've been doing so in droves you can see here that the pumps behind me are completely full, and there's been a steady scream of volume all morning. actually the line goes around the corner about 20 cars deep which isn't as long as i've seen it in different parts of florida over the course of the last few days but people so far have been pretty orderly pretty respectful of each other. of course, as tensions rise,

those dynamics certainly sometimes can change guys, back to you. >> all right, jackie, thank you very much. we will continue to check in with jackie as the situation develops and of course as the state of florida braces for hurricane irma, let's bring in autonation's ceo mike jackson. his company has 35 locations in south florida. he joins us right now on the "squawk" newsline. and mike, you know you spent the day yesterday in houston, where you also have a large presence >> yes good morning, becky. let's talk about houston for a moment first i found what i expected that people of texas, which are extremely diverse, came together with a neighborly spirit to make tremendous strides in recovery in houston electricity is -- was not really lost so that was a great benefit to the recovery. they're getting the traffic and the highway system sorted out. so that should be fully functional early next week and schools reopen on monday

so, all the building blocks to normalcy are in place, in houston. what i also noticed is that corporate america and companies took a level of interest and care in their employees like i've never seen. not just auto nation, but other companies, where we all systematically track down every employee to determine their safety, and the level of impact on the storm, and not just that, but then to take the appropriate steps to put them in a position where they can begin to put their lives back together. >> you have 17 stores in houston, and i think about 1800 associates what did you find from those associates >> we have 50 associates who have absolutely lost everything. they all were able to find shelter with friends, neighbors, family but they're going to have a long, hard road in rebuilding, and they will get the most support from us to begin the journey of rebuilding their

lives. and then we have another group of 200 that have been seriously impacted, along different levels business, the stores are all open our employees are back at work everybody needs a vehicle that lost it in houston to get around in the better off areas, people are able to come in and buy immediately without waiting for a check from the insurance companies. in low-income to middle-income areas, that's going to be the fourth quarter, because they really need to settle with their insurance companies. but overall, it's a very impressive ecovery and coherent, and neighborly, constructive recovery under way in houston >> that's great to hear, mike. what's the impact to auto nation just in terms of what inventory may have been damaged, other situations >> we haven't put a number on the storm yet, which includes lost inventory, damage to buildings, damage to lost

inventory, emergency pay to employees. you know, obviously it's going to run into the millions but we haven't put a number on that yet i can tell you that we probably lost 5% to 6% of our inventory is a total loss. we do have cars being shipped in from other parts of the country. right now they're on the trucks, coming in to houston the manufacturers been very cooperative and supportive in diverting production from other markets into houston so i think the supply issue is going to be addressed. the only thing, the number one operational issue we have in houston is to make sure all flood damaged vehicles are eliminated from our inventory pipeline, and are not presented to a customer for sale and that we do not take in any flood damaged cars, either accidentally, or, that we didn't identify because we're going to be held responsible for that car. >> right >> so we've had circumstances already where people come in with a too good to be true

story, they want to trade their car saying, yeah, there's no flood damage on this and we open up the trunk, and a family of frogs jump out so you know, we -- that's our number one issue from an operating point of view, is to make sure we have first class inventory to present to our customers. >> mike, let's talk about the situation in florida as irma is coming down immediately as we speak about this what are you doing there >> europemy is a worst-case hurricane for florida. anything coming from the south is like a vicious upper cut on the entire state governor scott recognized it right from the first moment. announced a state of emergency very early was very clear in his communication, and this is the most serious i've ever seen the people of florida take a hurricane from a preparation point of view. and companies closed much

earlier in order to give their employees a chance to deal with their family situations. you need to get inland off the coast. the worry is, though, if you haven't left to move north you're basically trying to race ahead of the storm, because the storm's going to run right up the state. so, i think your earlier reports were saying how calm and quiet things were, because people really began taking serious steps. days ago we're as ready as can be but the storm will wreak havoc with the electrical grid in florida, and in wilma, it took weeks, if not months to restore electricity, and that is a major disruption factor in trying to get a large metropolis society back to some semblance of normalsy i've never seen some seriousness and florida is as prepared as it can be >> are your 35 locations in south florida closed at this point, mike?

>> oh, absolutely. >> okay. >> they actually closed thursday afternoon. all inventory has been moved as we moved thousands and thousands of cars. we take parking garages at shopping centers, which are empty and have arrangements with them we move all the vehicles to high ground, protect them as much as we can then we close down then we tell all our employees to take care of their families now we're all just hunkered down and hope for the best. >> and we are hoping for the best, too. mike thank you so much for checking in with us ahead of time stay safe and we'll check in with you as this storm approaches and we see through it >> absolutely. good talking to you this morning. coming up, much more on hur rain irma and how florida oushld prepare. the state's former governor jeb bush will join us next they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate

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former governor jeb bush oversaw the aftermath of nine hurricanes while in office eight of them in a 14-month span four category 3 and a category 4. former florida governor jeb bush joins us on the "squawk" newsline governor, thanks for joining us. that was the year that we all point to, because it had been a long time since a major hurricane strike, i think the longest in history, but the last year we're referring to was the one where you watched one after another in a 44-day period, you had four big ones, right >> yep we had in 16 months eight hurricanes, four tropical storms, and we learned a lot doing that, i can promise you that both the state and local officials really were focused, and learned as we went along and all of that experience, i

think, has remained in the emergency operations centers across the state i think governor scott has done a great job. i'm down here in miami, and been watching the news, and there's lots of information, quality information, for people to make the decision whether to evacuate or shelter in place. and the citizens of this community have really responded. >> in 2004, just looking at some of the history, that charley was called florida's nightmare scenario at the time you were governor and it was coming in as a 3, or a 2 or something and then all of a sudden it hit as a 4, and you visited afterwards, i think, and the notes here say that you were -- that affected you. you were really shook up by that to see what happened and then that was, unfortunately pretty good experience for what was to come. >> yeah. and you know, we had -- we had special needs shelters that weren't special. they weren't hurricane

resistant. the really dedicated public nurses, health nurses that were there were overwhelmed and from that lesson, we invested a lot of money to provide safe, secure shelters, particularly for frail people. and all of that now is going to be put into play for sure. because the entire state will be hit by hurricane force winds during the next four days. so, this will be an overwhelming effort one thing that's important to note is that after the storm more deaths occur than before the storm. and a lot of times it's people getting onto the streets, into flooded areas, and they may get electrocuted, there may be other issues so they need to -- people need to continue to heed the warnings of local officials post-storm, as well. >> governor, was it the one that i remember that was so heart wrenching, was that andrew, where entire suburbs were just gone >> yes >> that was a category 5

so it's -- miami has been hit with a category 5 before, 1992 >> it was a cat 5 storm. it went through very fast. it wasn't a water event. it was devastating in south dade county and homestead and into the county for sure. and we -- you know, it took us months to recover. so a cat 5 storm, if it hits or a cat 4 storm, these are devastating storms that will take a long time to recover. now thankfully our building code has gotten a lot better. our emergency response capabilities are significantly better the cooperation between all, you know, local, state and federal governments from the lessons learned is a lot better. so i'm optimistic that florida's got the best emergency response capability in the country. and i'm confident in that regard but this is an overwhelming storm. >> and you know, you were -- it was a learning process for you

at one point there was some distribution center problems at one point with, i think it might have been fema, but back at the time you said look, i take responsibility, do you think everybody's learned or everybody's better at this now fema is better at this >> yes >> really? >> for eight years the guy that ran the florida emergency response operation under my watch was craig fugate, who ran fema and fema's been upgraded significantly. everybody is impacted in some fashion in our country with a disaster, so there's broad bipartisan support for all of this i think the country has gotten far better of understanding how to do this, and how to recover now the harder part of this is not for the federal government, it's the long-term recovery aspects. that's their primary responsibility and we'll see how it works because they're going to have to be doing a lot of work in texas, aand a lot of work in florida. >> you expect this to get

political? you know, people have already politicized what happened in houston. people politicized what happened here with sandy. do you imagine that's going to happen this time >> those are the nut cases on the margins. frankly. i think there's broad support for providing help to people in need and the response in houston is heartwarming not just the government. i mean, most of the support, frankly, is people to people right now, i know that there are people that work for the salvation army and red cross that are driving from parts unknown to florida, to help people in the aftermath of the storm, and literally every church group, every community civic based organization is preparing for this it's one of the elements of recovery in hurricanes that is really on the highlight reel if you wanted to be, you know, be honest about it. it is when people really show up

to help. and i don't think politics will get in the way at all. >> governor it's great to have you on our focus remains on trying to do everything we can to help, you know, make this as, you know, nondamaging as it -- get people where they need to be and have the right response. just real quickly since we talked about politics. were you surprised that -- i mean you had some experience with the president in the campaign what about this -- where he said i've talked to chuck and nancy and we're going to get this done, and did that raise an eye brow for you or nothing rises an eyebrow anymore? >> nothing raises eyebrow category and i've been focused on making sure that my home is safe and sound. we're going to be sheltering in place with my two near perfect grand daughters. and my daughter in law and son and wife and so i've been focused on how the heck can i get some ice and i'm set. we're all set. we're ready to go. and i watch a lot more espn now.

>> yeah. unfortunately that gets a little political. >> it does >> at times, too >> it does, that guy kim couldn't broadcast in virginia or lee his name was. give me a break. >> boomer and carson, you can get some good tickets now. >> not anymore >> maybe not anymore so i can't get you to comment at all? because it did make -- i don't know, it just, mcconnell and ryan in kind of a weird position, didn't it? i know you're still -- you must be avidly watching everything that's happening but these are interesting times at least, aren't they? >> well, look, after the storm we can talk about politics i think the key to the republican party is passing meaningful tax reform to create long-term sustained economic growth they do that, they're back in the game >> well, good. and let's do talk afterwards hopefully you'll be up here, and you know we'd love to see you again. it was good to hear your voice, governor, to be honest

thank you, good to hear your voice. we all feel that way >> stay safe, sir. >> take care in the meantime, the at&t global technology operations center is where the company evaluates both the impact of hurricane harvey and prepares for hurricane irma meg tirrell is there inside the center in bedminster, new jersey, to show how at&t keeps its networks running through storms >> good morning. this is at&t's global technology operations center. really the air traffic control center for at&t to monitor its entire network of technology, make sure things are running as expected it's really predictability that they're looking at here on all of these screens human behavior is typically pretty much the same when there's anomalies that they really spring into action to try to prevent any problems the customers might be facing. of course when there are issues like hurricane harvey and irma they already get in place on the ground to try and prevent any problems they also use tools in the air we talked with at&t's scott mayor about the use of drones.

>> that helps us pry ortiz the right type of work crews that need to be deployed. what it's going to take for us to get that site back on air the quality of drones today is absolutely incredible. and it's a really, really a great advantage to have that type of asset brought to bear, and damage assessment situations, instead of having to send a human up a power to do the assessment itself, which takes a lot more time, and quite frankly, it's you know, risk for the person on the tower. >> and they're 3407b forring everything from here they do have a few tips from communications in the storm. they tell everybody to charge their cell phones, charge backup batteries. store emergency contacts on the cell phones and if calls aren't getting through, texting might work better, guys. this really is ground zero, the eye in the sky for at&t to make sure its network stays running through the storms back over to you >> meg, thank you very much. again, meg tirrell when we come back, today's top corporate stories including the fallout from a major cybersecurity breach at equifax.

millions of americans' personal information exposed. we're talking about 143 million americans. we'll talk more about it when we come back. in the meantime as we head to a break take a look at the u.s. equity futures right now, it looks like things are a little bit eaker dow futures down by about 32 points s&p futures off by 4 the nasdaq off by 6.5. "squawk box" will be right back. my dell small business advisor

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welcome back to "squawk box. good morning we're right here live on cnbc and the nasdaq marketsite in times square among the stories that are front and center right now is this one. shares of equifax continue taking a big hit in premarket trading. that follows the news the credit reporting agency suffered a massive data breach that affected as many as 143 million consumers. equifax apologized for the breach, and is offering free credit monitoring services to everyone, even though it's not necessarily impacted you're looking at that stock now down about almost 15% just in the premarket this morning for more on the story we want to bring in cybersecurity expert morgan wright who served as senior adviser in the u.s. state department's anti-terrorism assistance program good morning to you, sir thank you for joining us help us understand what we should -- what we should be

doing about all this beyond just going to the website, and trying to figure out whether we've been affected >> that is an excellent question 143 million people affected. this is going to be -- this is as significant as all the hurricanes coming to the at one point in cyberspace. in addition to going to that website. people are going to have to look at should i put credit freezes on all my credit reports they need to start being very careful about -- >> can you do that if you're on the affected list you should freeze your credit with everybody >> absolutely. >> okay, what's that cost and how do you do it >> actually, if you go to the site that experrian has put out -- exwhich fax i'm sorry, they show you how to do your credit freezes, usually it's about ten bucks to put the freeze on. but i would do that instantly right now for at least the next 60 days. let this thing play out. >> wait a second you're talking about the next 60 days this has already been out there for more than 30 days. is it too late at this point >> it may or may not be.

a lot of times when this happens, and this is actually a very good question we've seen a lot of data be held for four years this stuff doesn't go away your name, your social security number, your date of birth, doesn't really expire. so this is great data that's going to be valuable not just today -- >> this company is offering you insurance for the next year. is that sufficient >> that's not -- i mean, that is just using an eye dropper to put out a forest fire. that is not going to be sufficient enough. you're talking -- remember when the linked in data breach happened they used passwords four years later including mark zuckerberg to compromise his account. so this is going to be out there. it has a long shelf life >> if you're a viewer right now, concerned about your own security, what should you be doing, online security >> yeah, you know, basically a lot of the stuff that we're talking about right now concerns identity theft you should be looking at is there any information that could be used to compromise your account. things that would indicate what your passwords are make sure you've got good healthy systems set up for how to change your passwords make sure you've got in addition

to what they have, i've got my own identity theft protection. i just don't trust what they give me because all they do is the bare bones >> when you say you have your own identity protection? through who? you don't necessarily have to tell us the company you're using. but who should we be using what should we be doing? >> i use a company called i.d. shield because one of the things they have is there's also some actual investigators, you actually have real investigators go out and do it but you need something you need something that's better than nothing you know, this is one of those things this is hard to find out how this is going to play out because we don't know who the actor is we've seen north korea be behind wanna cry and the ransomware attacks. is it possible it's them is it a state actor? or organized crime that's going to make a big difference on how your data is going to be used you've got to do some basic protection and the biggest thing right now is monitor and like you were saying, becky, is that it's not just the next 60 days. you need to put a credit freeze at least for the next 60 days that this information is going to be used right away, you know, at least you want to protect against that >> morgan --

>> there are no good answers to this >> real quick on equifax, the company itself, we're talking about the stock, what is -- are they a victim in this case or should we be thinking about them differently the reason i ask is there's a number of reports that the suggest they have had a number of hack attacks before this, and that they've been told that their security was not nearly strong enough. >> look, i testified before congress on healthcare.gov back in november 2013, your program was the first one i was on after that testimony, even then i said we should have the cyber equipment of sarbanes oxley to protect our equipment. you need to have chief executives that sign off saying we've taken these types of steps to protect this data the fact that this data was so close to the internet, you could get to it through a web server, that goes back to exactly what your were saying that is bad management, that's bad practice, and if you did the equivalent from a financial standpoint, you'd be going to jail >> what kind of regulation is around these companies now

these three companies have more information than just about anybody else in the world. >> they hold everything. they hold the keys to the kingdom. there's not enough this goes back to the point is, they had this information for at least six weeks, if not longer, like you said, some of the reports are some of the execs sold stock, you know -- >> do you believe that, by the way? is it possible that these individuals did not know about this that this could have -- >> if they didn't know about it, if they didn't know about it that's a failure of leadership why wouldn't your key executives know about a data breach everybody at the economicive levels should have known about this i don't, first of all being a former cop, i don't believe in coincidence. i think that there's a there there. i think the fbi needs to look into it. this is one of those things that it's going to get worse for these guys before it gets better not just because of the data breach but because of the actions of the executives. because of the lack of follow-through like you were saying on these reports that their security was bad and why, for heaven's sakes was 143 million people's data so close to the internet that all

you had to do was exploit a web application? that's like walking no the bank and finding all the cash is not in the vault but sitting out on the tables in front. that's just bad. >> final, final question we have been reading about this web application. what was that? and are other companies using a similar web application? >> i don't know. i actually was doing that research right before i got on i went to look to see what it was. they haven't really said it yet and they probably won't because they're continuing the application. it looks like it was probably one of their applications that howed people to interface with their site to pull things like credit reports or do a credit check or have other people inquire. could be third party access, too. as we found out with target the party was third party access third parties are security holes. if they turn out a third party may be behind this >> morgan wright, thank you. >> morgan, will you come back tomorrow or monday next week and maybe give us an update on what you've learned since that time >> absolutely. be happy to. >> we really appreciate your time and your perspective, and hope our viewers take heed

in the meantime we should tell you quick programming note, continuing this type of conversation, you don't want to miss it, 2017 cambridge cyber summit is taking place on october 4th. the program put on by cnbc and the aspen institute brings together top technology leaders, ceos and government officials to explore the latest in cybersecurity. imagine this breach will be one of the big conversations at that session. go to cnbc.com/cybersummit to get all the information. >> anxious i'm anxious. i'm anxious -- no, i mean, we have -- you know, earthquakes, hurricanes, north korea, identity theft i mean, there's a lot happening. >> yes >> is there not? >> if you do a credit freeze >> yes >> you got to do all three you got -- >> you got to do all three >> and what if you're going to lease a car in six months. >> then you have to effectively re-permission. >> your life just got more complicated. >> right >> are you anxious >> he's not on the list. >> i'm not on the list >> i have butterflies about i a

irma i'm just nervous about -- >> i've been nervous about a lot of things for a long time. >> right >> but it just -- >> i didn't know >> i've been told it's noise >> september 11th it's just a lot of, i just hope nothing's really -- >> you need a worry stone. >> i do. anyway, okay >> coming up, a new etf launching that tracks companies that support the gop the ticker, maga make america great ainga we're going to talk to the creator of that etf right after the break. this is a car protectm storms by an insurance company that knows the weather down to the square block. this is a diamond tracked on a blockchain - protected against fraud, theft and trafficking. this is a financial transaction secure from hacks and threats others can't see. this is a patient's medical history made secure - while still available to their doctor at their fingertips. this is an asteroid live-streamed

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let's get back to the broader markets. joining us right now is steve reese and ed keon portfolio manager at qmu qmu has more than $120 billion in assets under management gentlemen, welcome >> thank you >> as we were going to the last break joe was talking about how nervous he's feeling a lot of people are feeling that way with all the different things we're facing around the globe. how are you two feeling? >> i think a lot of people feel anxious. not so anxious, we're still pretty optimistic, we just released our 12-month forecast we still see the upside in equity markets 6% or 7% in the u.s.

i think the anxiousness we're advising them to diversify, shift a bit away from the u.s. go more global >> you really do get a lot of calls from people saying that they feel anxious right now? >> yeah. i'm based in switzerland covering the middle east a lot of clients are looking at the hurricanes, they're looking at north korea, i think if you stay focused in the long-term and focus on the fundamentals it's a lot easier to stay invested not to say that you shouldn't have protection. i think take advantage of low volatility add some to the portfolio or replace some of your long exposure with less directional strategies, protect you on the downside to help alleviate some of the anxiousness in the short-term >> ed how about you? >> 1% or 2% drop people jump in. so i've been cautious for awhile and frankly the markets moved better than i thought it would so far in the last few months. but we went away from the united states and towards europe, and elsewhere a few months ago, and that's the position we have. we're right around overall equity bench marks and

multi-asset portfolios so we're not taking a lot of risk relative to bench marks so i'm not bearish i don't necessarily think the markets going to go down right away but i think the valuations being where they are, despite great earnings, that a little bit of caution and portfolio allocations makes sense. >> what about europe is it your perspective after what we heard from mario draghi yesterday saying foreign exchange is something they'll have to take into account? >> i think the was interesting not just what he said but how the market reacted >> i thought it was weird. >> the euro soared what people heard was not that he was being dovish but rather the fact that they upgraded their forecast for gdp growth, and it sounded like he was thinking that the economy was stronger, and they may have to change policy a bit earlier than they thought at least that's how i think the market interpreted it. we have an interesting situation where we are really getting a synchronized global expansion. and where the inflation goes, and where the growth goes, is partially going to be determined by what happens with currencies.

with the dollar weakening recently we're importing a bit of inflation which i think the fed wants. >> right >> at the same time probably exporting a little bit of growth except we're in exports. so it's a delicate balance between the monetary authorities, going from an unprecedented territory. we've never had rates, policy rates this low in human history. trying to figure out how to get from there, to whatever normal is in the current circumstances, there's going to be tricky for monetary authorities everywhere in the world >> ed, steve, want to thank you so much for being here >> stay here because i want you to diversify your portfolio, i know all you're doing is these socially conscious things what's the name of your company where you are now? >> quantitative management -- >> qma, it's all socially starbucks kind of -- buy some of these etf that's coming up right here let's pay attention. diversify your portfolio >> this is fascinating >> hold the fort texas based point bridge capital is launching its first etf and it's investing in gop friendly

companies. >> there you go, baby! >> it's called magna joining us is carl lambert co-founder and managing director of point bridge capital. what is this about how are you doing this >> well, what i did was i looked at the s&p 500, i start with that, and i screened all the political contributions of the pacs and the employees and ranked them based on net contributions to republicans versus democrats, picked the top 150, and our rules based methodeology created an index, now an etf with 150 stocks of republican supporting -- >> and the basis for doing this is what? give us -- i hope you did some back dating -- not back dating but you looked back to try to figure out what the performance would be >> did some back testing obviously the s.e.c. doesn't allow you to market back tested performance. but there's -- the companies are great. these are great companies and if you look at what's going on right now the companies have become more political than ever.

and they're giving more money than ever. >> right >> and actually, a study was just released that came out in "the wall street journal" in august that republican-led companies looking at mergers, for a long period of time, significantly outperform versus democrat led companies so i'll be putting that out on investpolitically.com and people can take a look at that. >> could you provide a list to andrew where you could avoid these companies completely the 150 that -- there were 150 you've identified? >> yes >> that you could find a way to do the anti- -- >> my other question was, did you think of doing like the huff version. really all those companies are out of business >> i'm not sure that's true at all. >> well i mean you look at companies like, you talked about disney earlier today i mean, espn's gone very, very political in their reporting and i think it's hurting them. you look at starbucks, they went very political, it's hurt them target, so these companies are coming out and doing things politically that are not -- >> but -- >> i don't think -- >> i think you --

>> amen. disney yesterday amen hal, amen. >> look, just to go through those -- >> yeah. >> disney, espn's issues, i'm not sure necessarily political i think there's some real structural issues. >> this is so much fun -- >> isn't this -- >> i found him -- >> you did >> i was fascinated that he was doing this -- >> that's why you can't -- >> you can't believe it. you're like -- >> chagrinned. >> we wanted to understand this is a good book end for you. >> i want to understand. you can't talk about performance? and did you look at the performance of these 150 versus for example if you had created one based on democratic -- >> i looked at all the data and i feel very good -- >> what's whole foods? you've got mackey -- >> whole foods was a democrat company. >> but he's a huge free market guy. >> i know. >> all the gmo stuff -- >> by the way, but the question is do you think that people who are buying this etf are doing it out of some kind of political

allegiance or they're doing it as an investment thesis? >> i think there's a couple reasons you'd want to do this. number one, if you're looking at the politics in your life and you're looking at what's going on, and you're maybe boycotting a product, right, you don't even realize you may own that particular company in your mutual fund. so you're boycotting, and the stock goes down because you're not going to buy the product, and then you own it in a mutual fund so i mean that's a problem >> at the end of the day -- >> thumbs up or thumbs down. >> thumbs up come on, give me a -- >> the market idea is brilliant. >> -- a longer conversation. we appreciate you being here >> happy to come back any time >> great job >> magna is the ticker >> every time one of these companies pops up and says something i'm happy to come back >> you're welcome back any time, hal. any time good luck. coming up, it's a robot, dominoes -- i think that's a maga company patrick doyle, wants

self-driving cars to deliver your pizza we're going to talk t ctoheeo at 8:50 a.m. eastern stay tuned you're watching "squawk box" on cnbc

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hurricane watch, irma downgraded to a category 4 but she could still deal a deadly blow on florida. the latest on the storm's path straight ahead americans at risk. a massive data breach at equifax exposing personal details of 1 43 million americans that is nearly half of the u.s. population plus, pharma bro in trouble. why prosecutors want a judge to

revoke the bond of convicted fraudster martin shkreli the final hour of "squawk box" begins right now live from the most powerful city in the world, new york, this is "squawk box. good morning and welcome back to "squawk box" here on cnbc live from the nasdaq marketsite in times square i'm joe kernen along with becky quick and andrew ross sorkin the futures are lower this morning. lower for most of the session but not greatly so down 29 points on the dow. the s&p down 3.25. the nasdaq indicated down 4.5 points or so the dollar has been weaker again for the last, well, short-term and intermediate term it has been weaker. and today talking about 1.2065 on the euro. 1.23 pound

i thought the pound was a little more parity. that didn't happen back to 1.32. >> what did we get down to 1:05? did we get that low? >> i think we were there >> did we really on the pound >> no, not on the pound. on the euro. >> pound after brexit was down in the teens wasn't it >> yeah. >> okay. we have an update corporate story to pay attention to. it's a personal story, as well, for all viewers. please pay attention to this equifax is facing the fallout from a major cyber breach. some experts are now calling one of the biggest in history. aditi roy is live in san francisco with that story. >> good morning, andrew. shares of equifax at the moment are down about 12% in the premarket. the credit reporting company says it discovered the breach on july 29th, and it happened between mid may through july the incident could impact up to 143 million americans, that's nearly half the country. the information accessed includes names, social security

numbers, birth dates, addresses, in some cases driver's licenses. 209,000 credit card numbers were breached the criminals also accessed personal identifying information for 1882,000 people. for consumers who may be affected the company set up a toll free number and a dedicated website with this message from the ceo. >> i apologize to every affected consumer, and all of our partners >> equifax says it has no evidence of unauthorized activity on its core consumer or credit reporting databases the fbi is also on the case. >> before you go i should tell you a number of our viewers, including by the way one of our producers, are now getting notices when you go to the equity fax website that it itself may be a phishing scam our understanding is that it is not. however, there's now an article

that ars has put out saying that the website that was created to notify the breach is highly problematic itself it runs on a stock installation of wordpress, the blogging software the tls certificate doesn't perform proper revocation checks the domain name isn't registered to equifax itself. and as a result cisco owned open dns which is a technical term for how some of the delineations are looked is blocking access to the site and warning that it is suspected of a phishing threat >> they screwed up even the way to find out if you were already compromised. >> exactly so, just more information out there. what to do about it i don't know i still think you should probably go to the site. >> we've all done it and gone to the site to try to figure it out. let's take another look at shares of equifax if we can to see the pressure the stock has come under hearing how this is playing out, imagining that this is not going to be anywhere year the end of what's been happening with this. stock is down by 13% it's been down by as much as 15% earlier this morning

but obviously this is a story that is not going away any time soon >> did you say ars techniquea. is that one of your subdivisions >> it isn't. but i should probably send them -- >> i thought it was a unit -- >> ara technica is a great website. >> it's not you? you've hidden it through the dns stuff you were talking about -- >> domain name server -- >> we just -- >> are you making any money from this >> not yet not yet! >> ars i've heard that. >> i have the lawyers on them. >> i can't believe he plugs his own -- something >> oh, there you take a look at some of the cybersecurity firms that are seeing a little bit of a boost on this. we did talk to a guest earlier who warned us morgan wright who said that if you are somebody who has been impacted by this, once you check that website, that you definitely should do something like an i.d. shield or another program that gives you some sort of coverage, of

checking to see if you've been compromised. in the meantime, hieurricane ir was downgraded to a category 4 this morning we are still talking about winds of 155 miles an hour get the latest on where the storm is tracking for that we get to nbc meteorologist kaylee. >> this is a very strong category 4 so in regards to it not being a category 5 anymore, it's this close to still being a category 5, and i wouldn't be surprised if we see that intensity go up as we go into the afternoon hours. this storm is going to be going over am very warm water as it passes in between the bahamas and cuba some of the warmest water it's seen let's go over what you can expect it is going straight for south florida at this point. regards to landfall, early sunday morning so what are some things that you can expect as that moves closer to south florida hurricane force winds will extend out this is a huge storm huge in diameter so the wind field is going to

extent from the center for hurricane force winds up to 70 miles. tropical storm force winds up to 185 miles. orlando from miami is a little over 250 miles so this is going to take up much of south florida as it gets closer and eventually as it makes landfall but that's not the only thing. let's talk about a couple other things you need to watch out for. storm surge, especially for the florida keys and along the coast in south florida we could see storm surge five to ten feet in some of those low lying areas that's going to cause a problem. plus you have to add on top of that, some heavy amounts of rainfall this is a map here of the rainfall where you can see 8 to 18 inches depending on where you are. more details coming up later on. >> okay. there is still -- thank you for that there's still plenty of uncertainty about the hurricane's path joining us john davis, the chief meteorologist at risk pulse forecasts what's in store for florida's businesses good morning to you, john. >> good morning.

>> talk us through, if you could, how you even forecast the impact on business >> well, from a business standpoint there's really three sectors that we tend to look at. agricultural impact, the energy impact, and the impact on supply chain logistics. there's really three different areas that we tend to focus on, and all of them will have major risk and major ramifications over the next three to four days >> can you put numbers on any of this >> absolutely. so if we look at some of our supply chain clients, and for example, as we look at one of our clients is a major convenience store across the u.s. they have 2 it,000 stores in florida. and from our data analytics that we ran just about an hour ago, 38 of those stores will see winds up to 160 miles an hour. 297 will have winds of 130 and 618 will have

100-mile-per-hour winds. so the damage there to those stores and the impacts on the supply chain will range from catastrophic, to out for a couple of weeks with some minor damage to some of those stores it's a major, major impact >> are you also then putting numbers around what the replacement cost is to get those stores back up and running >> no. what we do is look at the time horizon. in other words, the impact on the supply chain in other words, in this case, for example, how long will those storms be offline, or closed and that helps our clients here with the workforce it also from a shipping and lane standpoint, as to getting product back in, and when those stores will tend to reopen >> do you work for investors, as well >> absolutely. absolutely >> so if you're an investor this morning trying to understand how to even even put some kind of numbers around what this could do to companies that are exposed, how do you even begin

to approach it >> we do the entire supply chain from farm to table so let's take a look at the agricultural impact. in florida, major damage to citrus, major damage to the fruits and vegetables, which are being planted right now across the central partial of the state. further north in the southeast ag belt we have major impacts here to cotton, corn, soybeans, and also that's kind of the hub of the poultry industry across the nation we have major issues to that and again that will have ramifications across the supply chain. not only in that squadron of the country but across the nation and in other areas of the world. >> jon, you do any investing yourself >> not commodity investing, no but certainly have some stocks >> i was just curious if -- i hate to say this because it sounds terrible, if there was a trade around this that people aren't thinking about. >> well, i mean, one of -- i'll give you an example, from an

energy perspective, this is not going to have an effect on the supply end of the spectrum, no impact on the northern gulf of mexico offshore operation for oil and natural gas. what it does do is it affects demand demand from a standpoint of power outages across large sections of florida. and into the southeast and also with the rains and the clouds that we tend to get with the system like this that we tend to have what we call demand destruction. cooler temperatures, less ac load so that's one of the big impacts is demand destruction on the demand side of things, and with no impact on supply, it's all demand destruction in the energy sector. >> jon, thanks for your perspective this morning really appreciate it >> my pleasure >> much more to come still on "squawk box" this morning, up next the cfo of kroger will join us we have a lot to talk about with him including the company's latest quarter the grocery price wars and a new competitor in the aisles, amazon plus the threat of hurricane

irma roiling the orange joyce market o.j. futures spiking in the past week what's at stake for the breakfast beverage and later former congressman charlie crist -- former governor charlie crist and how he is helping the state prepare for aye storm at 8:40 eastern time st tuned you are watching "squawk box" right here on cnbc. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. for tech advice. dell small business advisor what they want out of life. with one phone call, i get products that suit my needs and i get back to business. ♪

welcome back to "squawk box. the story never stops. the pharma bro is at it again. martin shkreli is who we're talking about. he could have his bail revoked after he posted about hillary clinton on facebook. he wrote the following, quote, the clinton foundation is willing to kill to protect its secrets. so on hrc's book tour, try to grab her hair from her i must confirm the sequences i have will pay $5,000 per hair obtained from hillary clinton. payment after sequence matches good luck, patrollers. now federal prosecutors -- >> what is he talking about?

>> he's basically telling people to go out and pluck hair off of her head, physically off of her head >> if it matches -- if he can link her to any of the murders of all the people that have been -- >> federal prosecutors moving to revoke his bail arguing that the post is a threat >> oh. >> the soap opera continues. >> coming up -- i was listening to you read that that's really -- >> it's a real story >> kroger just out with quarterly results, shares of one of the nation's biggest grocery chains, and we got kroger cfo mike slotman will join us. a lot of stores in houston, and i think they've got presence in florida through the recent acquisioofitn lucky's first on cnbc next hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge.

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supermarket giant kroger reporting quarterly numbers just moments ago. profit up 39 cents a share in line with forecasts however revenue was above estimates. as is kroger's full-year outlook. here to talk quarterly results, and explain how america's third largest grocery concern is dealing with all of the issues, staying competitive. the stock's down i'm trying to figure that out. do you have an idea at this point mike schlotman, executive vice president and cfo of kroger, also member of our cnbc global cfo council

39 cents is that the number to compare to the 40 cent estimate and with sales above can you account for what might be disappointing to the street right now, mike? >> the 39 cents is actually a very nice quarter for us so there's actually several sources out there for what consensus estimates are. there was a different estimate than first watch for example most of the analysts were expecting 39 cents and if you look at all 27 hours, the consensus actually is 39 cents. rid sales were strong at 0.7%. we're back into positive i.d. sales. that was better than what the street was expecting we feel really great about the quarter we delivered we have strong momentum. great market share great unit growth. so we really saw some momentum come back into the business -- >> if i were to ask an analyst why the stock is down a couple of dollars on this, what would they say there's nothing that you can

point to that would have disappointed players, it's just one of those things? >> yeah, the one thing that i can think of, joe, would be going forward we're only going to give annual guidance and not long-term guidance that's something -- we've been giving long-term guidance since 2012 and we just decided in this environment, as fast changed as it is we're better off trying to give annual guidance and delivering on an annual basis what we promised and not make bad decisions in the short run to try to hit a longer-term growth target. >> because it's too hard to see what's happening or how you may have to respond to any changes >> it's a little bit of both there's a lot of changes going on in the industry we're making a lot of changes ourselves. a lot of investments we're making, and we don't want to make a bad decision today that could try to hit something over a three year period, and we think we'll be a stronger company by doing it this way >> mike, talking about those changes, what's your view, and

implications, directly, of the amazon/whole foods transaction >> well, you know, that is something that obviously has been out there for awhile. the merger's only about a week and a half old officially. and you know, we have the local connection, and the physical assets to connect very well with our customers on a day in, day out basis. we have 9 million customers a day come through our stores. that love what we do on a daily basis. as i said we continue to grow market share, and grow overall household growth we have a digital platform of our own. our digital sales are up strongly in the second quarter, over 100% growth, and we feel great about offering our customers the opportunity to shop anywhere, and buy anything, and do it at any time on their terms. we're trying to make it an and proposition not an or. and we feel very good about where we're positioned >> kroger put my uncle's, small

grocery store out of business, so now you know how that feels because kroger was always a dirty word >> oh, really? >> i'm not kidding yeah right at crowd's corner. right across the street -- >> i know exactly where that is. >> hey, so houston, you got operations in. what about florida you have through lucky do you have to deal with this now, too? >> well, we have -- we have several operations in -- the good news is in houston our team just did a phenomenal job. all but two of our stores are open and those two stores took on a significant amount of water and we're already in redoing those stores we actually have a specialty pharmacy business that has operations in florida, and in san juan the san juan facility came through just fine. lucky's is a chain we have an equity investment in, they are evacuating their stores. and, you know, as that storm is forecast to move up the peninsula, obviously we have a lot of operations in georgia,

and our folks are all hands on deck in that part of the world unfortunately, we're adept at dealing with these issues. it's a little tough to deal with them back-to-back like the country is today but our hearts and souls go out to both the people in texas and those down in florida who are getting ready to face obviously a very significant event >> you going to use the technology that's coming around? i guess you have to think about, don't you? i'm glad i'm not in a position to make these decisions. you got to do maybe uber is that going to be something that kroger eventually does for grocery delivery >> well, we have multiple -- we have our quick list operation in 700 stores more than 700 stores today and we're testing in multiple facets of home delivery. we have relationships, and tests going on with ship, with uber, with instacart and other local smaller operations popping up in individual cities.

so we think the customers are going to want multiple ways to interact with you, and our goal is to be able to do that we love what we see from our click list operation we continue to roll that out the customer engaged in that is phenomenal those customers become more loyal with us the longer they're engaged with click list and we like what we see from the increased penetration we get in that customer share. >> be nice to have a little inflation, i guess, wouldn't it? again, we're hearing that that's what the fed is worried about. and that makes it tough for -- any type of deflation is tough, isn't it >> yeah, it crept back in just a little bit, the grocery category was slightly inflationary in the quarter. there was -- so there's a little bit of inflation out there pharmacy inflation on the other hand came down quite a bit that it ended up slightly inflationary on the quarter as a whole. but nothing, you know, nothing robust by any stretch and a little bit is generally good for our business you're correct >> okay. all right.

i have it on here. my dad worked in that ugly blue building you had down in cincinnati remember that ugly thing that's gone now. >> it's -- well the building is still there. it's just white now. we got rid of the blue >> oh, it's white. it was hideous like a throwback to like, i don't know, the '50s anyway, mike, thank you. >> so thrilled he joined us this morning. >> isn't he? you put my uncle out of business and then -- that was just relatives. they were -- >> we love mike. mike's fine. he knows exactly -- you've been to -- >> even though i'm a northern kentucky native i know my way around this side of the room pretty darn well >> andrew $3 drinks. swear to god bourbon and water is like three bucks. >> i wouldn't know anything about that >> all right, thank you. thanks, mike see you later. >> when we come back, a mega data breach at equifax impacting 143 million americans.

social security numbers, addresses, much more, all exposed. and if you've ever gotten a credit report you could be one much these people. we'll have more on the fallout from the breach right after the break. take a look at the u.s. equity futures. equity fax is down about $18 dow futures down by about 30 s&p futures off 3.5. the sd dnaaqown just over four points "squawk box" will be right back. the governor has declared a winter weather emergency... extreme risk of burst pipes and water damage...

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welcome back to "squawk box" everybody. today's top story is the credit reporting agency equifax now reporting a massive data breach that exposed the personal details of as many as 1 43 million americans. eamon javers spends his days right now at the white house but he also has years of experience covering suber security and eamon, thanks for making the time to kind of throw this around this morning. it's something we're hugely concerned about. 1 43 million americans

not as big as the yahoo! breaches that we learned about last year, but in terms of the information here, things like birth dates, social security numbers, much more important information probably that's been breached >> yeah, absolutely. look, all americans have a reason to be concerned here, because when you add up this breach, plus yahoo! plus target, and on and on and on, all of the other breaches we've seen in recent years, you're talking about effectively nearly every american having been impacted by one of these breaches. and so what does that mean ultimately i think, you know, if you take a step back and look at this problem holistically, i think what you're dealing with here is a broad systemic problem in which the u.s. economy has simply put all of this information on to the internet, and there's huge advantages to doing that but there's these huge disadvantages that we're learning about now and companies have largely seemed to have concluded that this is the cost of doing business, in order to have all the advantages of the internet >> that they don't pay that we end up paying. and we've been talking --

>> i don't think so. >> well, yes and no. i mean, look, what equifax is offering to do is pay for a year of insurance, and a year of monitoring, to see if anybody breaks your account. we've already talked to an analyst, someone who used to advise the state department said that's like trying to put out a fire with an eye dropper because it's not nearly enough to really take into account how long you are going to be compromised essentially. >> yeah, right >> so american consumers are the ones who are going to pay the big burden on it >> well, here's the interesting thing. i think you see a huge political outcry to do something about cybersecurity. >> i think we will >> if american consumers were really being impacted, though. but what you're not seeing because the companies and the banks are largely absorbing the cost of this, roo it you're not seeing consumers -- >> not for the long term -- >> of americans coming out and saying my entire bank account was drained. my retirement savings is gone. i'm destitute. i'm on the treets. those things are just simply not happening. and that's because the cost of the fraud are being absorbed in the system among the companies

that are hit here. the consumer doesn't see the impact of this if they did, you'd have people rioting in the streets, marching -- >> eamon, this is a longer-term impact i may not be something that shows up immediately but i think you will start to see bigger and bigger problems like that. especially with information that has been compromised in this breach in particular it could be completely identity theft and fraud at this point. based on that information that they were getting. >> right and here's where i'm going with this what i don't think we know is we see these reports, we see large hacks and all this data that's been stolen, what we don't know is where is the fraud coming in? right, because companies don't have to really disclose exactly how much fraud they're seeing. we don't get very detailed reports from banks about how much fraud they're covering. a lot of these is subject to what's called a material level of disclosure. it's a material event the company has to disclose it if it's below that threshold, though, they don't really have to disclose it so we don't know -- >> material for who?

the company or to me >> material to the company if it's material to you they don't have to disclose it as long as it's not material to them that's what we're not seeing here how much money is actually being stolen as a result of this activity and where is that money going? all of that information is hidden behind layers and proprietary information and data that we don't really have a full, complete picture of. a lot of money is being stolen the question is, who is it being stolen from? >> i don't think all breaches are equal in this. and i don't think all companies are equal in how they've handled it i do realize that you have state actors that are sometimes going after individual companies, and this does not seem like a fair fight in any way, shape or form. but as andrew pointed out earlier, equifax has been in the position of being told that they didn't have enough security, and that they should never be storing 143 million americans' information, incredibly personal information, so close to the internet and that there may be some companies that just aren't doing enough and i guess the question is how do you separate the wheat from the chaff in a situation like that and how do you have standards, or self-policing from the industry, or does the government

have to get involved in some of these things >> look, this is a generational issue. it's really tough for ceos, right? when you think of the average ceo of an american company they've come up through the sales ranks, the operational ranks. you don't have many ceos who came up through the cybersecurity ranks who know a lot about that issue when the ceo -- there are some when a ceo is wrestling with this question he or she is being presented with a lot of information from consultants and they're selling what to the ceo is a black box they don't know exactly what they're getting with the cybersecurity products they don't know how effective they're going to be and they don't know really exactly how much they ought to spend on all of this. they kind of do what the consultants tell them to do and more or less leave it at that. and some of them aren't even doing that much. so, generationally, we'll see a changeover as more ceos come into positions of power and realize this is important, particularly as we see ceos losing their jobs over the impact of some of these things which we've seen in the past, and you know, sony was devastated by a hack and we could see that again in some of these other companies.

>> and equifax shares today down by 15% at one point this morning. eamon, thanks very much. appreciate it. >> you bet also a programming note for you folks. don't miss the 2017 cambridge cyber summit on october 4th. the program is put on by cnbc and the aspen institute and brings together top technology leaders, ceos and government officials to explore the latest in cybersecurity, including this very problem for more information go to cnbc.com >> in other top stories, the southern region of the u.s. is prepping for hurricane irma. lowe's is among the retailers trying to keep its shelves stocked with supplies and kate rogers is inside lowe's regional facility distribution center hi, kate >> hey, joe, we are here inside lowe's regional distribution center in north carolina where preparations have been under way for about a week now ahead of hurricane irma's landfall here in the u.s this facility as you can see is absolutely massive it's 1.6 million square feet

you can fit 31 football fields inside of here and each year they ship around 40,000 trucks worth of supplies to starts in north and south carolina as well as virginia and west virginia. they're also sending about 1700 truckloads of supplies to stores that may be impacted by hurricane irma in florida, south carolina, and georgia. of things including generators, of course, gas cans, wood pallets, water, trash bags and more they're also receiving new shipments and replenishments of those crucial supplies on a daily ongoing basis. but what's unique about this distribution center is that they're also still dealing with the impact and fallout from hurricane harvey >> when hurricane harvey comes and now irma is here, what we're doing is basically having to respond to the needs of the community. send in the products such as generators, water, preparation prior to the disaster arriving and then also looking to make

sure that we're ready to handle post-recovery. >> they're in the process of shipping out about 20,000 buckets worth of relief supplies to those impacted in the houston area if you take a look behind me, these conveyor belts, they're what's putting all of those crucial supplies onto the truck. it can take hours and sometimes up to a full day to get across fully loaded before it's september back >> kate, thank you very much florida's orange trees are in danger of getting pounded by hurricane irma and that is causing some massive surprise swings in the futures this week. over the last week the prus for futures is up about 11%. joining us is the founder and president of option sellers dotcom and james we know that over time the orange market in florida has shrunk what does this storm potentially mean >> becky, this could really be the last straw for the florida orange industry, really. to put it into context, at the

beginning of the century, florida was producing over 200 million boxes of oranges, and this past year, they produced only 65 million boxes of oranges. basically the smallest crop in over 50 years. generally speaking, an orange tree can withstand 50 miles an hour wind. it's thought that once it reaches 50 to 75, we could lose as much as 33% to 40% of orange production the last time we faced anything like this was in 2005, where we did lose 40% of orange production in florida. we actually had two storms that year, but they were category 1 and category 2 and they lost nearly 40% of production that year >> what happens if this is a complete wipeout how long does it take to get trees back up? would next year be a better crop or does it take many years for something like that could recover? >> good question, becky. it's five to seven years to get a tree started and then actually to be producing a large amount

of oranges basically, the timing of drinking the florida oranges and orange juice continually might be shifted to brazilian orange juice if this spaghetti plot continues on the same track. 70 to 100-mile-per-hour winds is a major crop and a lot of florida orange producers are probably going to retire, which they're probably going to do anyway >> it's terrible to hear james thank you for the update we appreciate it >> my pleasure we're going to talk more about the now category 4 mega storm irma closing in on florida. we're going to be joined by the state's former governor congressman charlie crist about the prep for the storm and why he's calling for an investigation into united airlines "squawk box" returns in just a moment kevin kevin kevin kevin kevin kevin kevin

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today's top story, florida bracing for hurricane irma governor rick scott declaring a state of emergency there both sides of the florida coast are evacuating joining us right now is congressman charlie crist. he's also the former governor of florida. good morning to you, congressman. >> good morning. how are you doing? >> we're doing well. thinking more about what's going on in florida, and you in terms of the preparations, do you think we've done enough? >> i think we're pretty prepared floridians are pretty seasoned at this kind of thing, as you know we take it very seriously. nobody knows exactly where this hurricane is going to have

direct impact. there have been some moves a little bit to the west that we've seen in the past few hours. and so, those of us on the west coast, i'm in st. petersburg today, are increasingly concerned about that and the watch word is be prepared pay attention. be smart >> what kind of preparations are you making personally? >> well, getting a lot of water. making sure that we're helping people with sandbags throughout the district, which is pinellas county here on the west coast. helping our mayor in his preparations, as well. it's all hands on deck, to be honest with you. working at the state, the local, and the federal level to make sure that we're as prepared as we possibly can for this incredible storm >> are you satisfied with the -- with the preparations on the federal level? >> yes, i am i'm very pleased that congress has responded in the way that we have i think that's important to be working together that's what people want us to do, after all. and so it's important, especially in a time of need like this, that we understand

what our role and responsibility is i think that hurricane harvey sent a very powerful message to all of us. to make sure that we're prepared, that we work together. we do everything we can in cooperation with each other. we're all americans, and we need to cooperate and we are. >> you called for an investigation into united airlines' pricing structure during the hurricane what do you want to happen >> well, i want the prices to not be so high other airlines have been very responsible. i sent a letter last night to transportation secretary elaine chao asking her to look into this and what has happened is, delta, southwest, american, and others, jetblue, have lowered their prices they've been very cooperative, giving people who need to or want to have the opportunity to get out of the hurricane path to be able to do so in an economical way unfortunately, united had not done that. at least as of last night. so we're hoping -- >> but are you suggesting that

united is trying to gouge customers and take advantage of this or are you -- >> well we hope not -- >> not lowered their prices, and approached it the way some of the other airlines have? >> well, more of the latter, we believe. but that's what the investigation is about to find out what the facts are for sure. you know, i'm a former attorney general of florida we enforced the price gouging laws during that time. the current attorney general is doing the same and i'm glad that sheis. but it's important for all of us to be on watch for these kind of things we have to watch out for our constituents, the boss, the people we're here to serve and make sure that they're being treated fairly >> would you ever press for laws surrounding pricing, not gouging, but one of the things we were talking about is some of these airlines which have somewhat magnanimously decided to lower their prices on behalf of the affected people, would you ever -- would you ever want that to be a regulation? >> that wouldn't be a bad idea

i mean, you know, it's talking about doing the right thing. like doing unto others, exercising the golden rule, if you will i mean when people are in a time of need, as we all are, facing this incredible storm, the right thing to do is to help people be able to get out of the path of the storm, do it in a way that is economical, that is feasible, and that is compassionate. that's the right thing to do so why not >> okay. congressman we really appreciate your time this morning your perspective we really hope you stay safe, and hope all floridians stay safe >> thank you very much appreciate that. and let's not underestimate the power of prayer, too >> thank you >> president trump just tweeting, there've been a few tweets this morning, mostly about hurricane irma but this is about health care. republicans, sorry, but i've been hearing about repeal and replace for seven years. didn't happen, even worse, the senate filibuster rule will -- never allow the republicans to pass even great legislation.

eight democrats control. will rarely get 60 versus 51 votes. it's a republican death wish still talking about health care. all right. not off the table. still definitely something that -- when we return a pizza delivery without a delivery man? domino's investing in autonomous solutions to get your pie. ghafcepaicdoe o trk yl rit ter the break. i count on my dell small business advisor

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what do you have to deal with on that front >> four stores closed down in houston but the recovery is in great shape there. miami we're feeding people feeding first responders and already delivering food to

shelters and we have been feeding gas station attendants because they're the heros right now. they're hanging in there to get people fuelled up so they can go we're making sure our people are going to be safe and we're mostly focused on people that need help right now. >> you feel good about all the preparations you had time this has been a week almost. >> we're feeling good about it but our prayers are with everybody in florida and the caribbean. we have three stores in st. martin and we're still waiting to hear the condition of those and it's going into the bahamas now. a bunch of stores there. people need to take it seriously and get ready and get cleared out of florida

>> we want to talk about this thing you're doing with ford there's still people in the cars how does it work you ask them if they would be open to it and then test it to see how it would work? >> so it's an early test really what we're testing right now is the last 50 feet of the delivery so we're understanding how our consumers can interact with us what do we need to do to make it safe for them to make sure that they understand what they need to do. will people come out of their homes or apartments to get the pizza? we're giving them a key pad to punch in a number so that the thing opens up but clearly self-driving vehicles are coming. we have been testing on tracks and this is now the first time that we're bringing it out on to the streets and good news for us is we're in southeast michigan ford is 20 miles down the road

and as you look at the future of delivery and transportation it's happening here in michigan we're getting in early and we're understanding what is going to need to change for with us the consumer-customer interaction with the delivery. >> will we be asking whether you're going to replace the driverless cars with drones. is that really coming? >> changes in transportation will be dramatic over the next five or ten years. you have already seen from ford that they're talking about the 2021 model year they'll be producing self-driving vehicles. a lot of other folks working on it so we look at it and say there's clearly going to be change here. we have to understand it understand how we can leverage it and make it a great experience for our customers but

the stuff is coming. a pretty dramatic change in transportation. >> will your drivers get better jobs somewhere else at the company? how will that work >> it's interesting. we got the question what does it mean for the people work in the stores >> a better experience for the customer so you grow your business we employ a lot more people in the day in the u.s. than we did before the majority of our orders were being done digitally. jobs are going to change but you're still going to need people to make pizzas and load the cars and we're employing a lot of people in technology half now are people working in technology

it's only going to grow our overall employment. >> how about food costs, cheese, dairy, everything, where are we with that. >> food cost is benign we're look at essentially flat for 2017 so that's all good on that front. we're making sure that the value is right for our customers. >> i can pick up a spapizza for half of the delivery price we have been doing that a lot. i don't know maybe i'm getting cheap or something. >> getting. >> yeah i'm getting it cheap but it's still dominos i can tell you that much. >> thanks for that joes. >> you're welcome. a large with double sauce. when we come back this

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>> president trump hitting twitter again. republicans must start the tax reform tax cut legislation asap. don't wait until the end of september. need it now more than ever hurry. >> all right 8 or 9 tweets. >> tweet storm. >> a tweet storm anyway hope you join us on monday squawk on the street is next >> good morning and welcome to squawk on the street at the new york stock exchange carl is on assignment headed to florida for obvious reasons. late they are hour we'll have an